The average cost of a mortgage loan in the United States is, depending on many terms, 3.5-7% per annum. If a resident of another country decides to issue a loan, then due to the emerging risk, the rate may be increased by 1-2%. Keep in mind that there are two types of rates in the USA: floating (can change every few years) and fixed (set for the entire period of payments). Loans at floating rates are cheaper, but more risky than at fixed rates. The average borrowed funds are $100,000.
In America, there is a down payment on the purchase of real estate, which is usually equal to 30-50% of its price. In some cases, you may avoid the first payment, but this usually increases the mortgage loan cost.
To obtain a mortgage, you will need the following documents:
- ID card / driver’s license;
- income statement;
- credit history;
- one or several recommendation letters from banks, in which at least two years of cooperation are confirmed;
- account certificate, which will be enough to make an annual payment on the loan;
- copy of the real estate purchase and sale agreement.
This list is not fixed, since each mortgage loan is issued individually. All documents must be translated into English. An application is processed within 30 days.
Also, a foreign buyer of American housing will have to spend money on its assessment (up to $ 500), processing documents submitted to the bank (up to $ 400) and real estate insurance (1-2% of its value). An optional but important procedure may be to check the condition of the house. For $ 250-500, the facility will be monitored, which will reveal all housing defects. By purchasing a mortgage loan, you need to return the bank from $700 to $1,000 per month. Don’t forget about utility bills – that’s a few hundred dollars more.
The mortgage loan can be refinanced at any time into a more profitable loan with a lower interest rate.
When deciding to buy real estate in the United States, it is worth considering the remoteness of the USA from your residence country. Getting a visa, flights and other formalities can cost several thousand dollars. This purchase is justified only for the purpose of migration or long-term lease of the acquired property.